MARKETING CO-OPERATIVE SOCIETY MYDT. ,PETLAWAD, DISTT. JHABUA vs. ITO-JHABUA, JHABUA

ITA 684/IND/2025Status: DisposedITAT Indore27 April 2026AY 2017-188 pages
AI SummaryPartly Allowed

What were the facts?

The assessee, a marketing co-operative society, claimed a deduction of Rs. 23,10,637/- under Section 80P. The Assessing Officer disallowed this deduction, and the Commissioner (Appeals) upheld the disallowance. The assessee appealed to the ITAT.

What did the Tribunal hold?

The ITAT held that interest earned from co-operative banks is eligible for deduction under Section 80P(2)(d), restoring this issue to the AO for verification. However, the rental income deduction under Section 80P(2)(e) was rejected, and the deduction under Section 80P(2)(c) was remanded for factual verification regarding the 'consumers' co-operative society' status.

What were the issues?

Eligibility of interest income from co-operative banks for deduction under Section 80P(2)(d), and the applicability of Section 80P(2)(e) and Section 80P(2)(c) for rental income and other activities respectively.

Which sections of the Income-tax Act were involved?

Section 80P,Section 80P(2)(d),Section 80P(2)(e),Section 80P(2)(c)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, INDORE BENCH, INDORE

Before: SHRI B.M. BIYANI & SHRI PARESH M. JOSHI

For Appellant: Shri Ashish Goyal, N.D. Patwa & Divyanshu
For Respondent: Shri Ashish Porwal, Sr. DR
Hearing: 15.04.2026Pronounced: 27.04.2026

Per B.M. Biyani, A.M.:

Feeling aggrieved by the order of first appeal dated 30.03.2025 passed by learned Commissioner of Income-Tax (Appeals)-Addl/JCIT(A)-2, Hyderabad [“Ld. CIT(A)”], which in turn arises out of the assessment-order dated 05.11.2019 passed by learned ITO, Jhabua [“Ld. AO”] u/s 143(3) of Income- tax Act, 1961 [“the Act”] for Assessment-Year [“AY”] 2017-18, the assessee has filed this appeal raising following effective ground:

Marketing Co-operative Society Mydt. ITA No. 684/Ind/2025 – AY 2017-18

“1.The Id CIT(A) was not justified in confirming the addition of Rs.

The order continues below.

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